Finance minister had earlier withdrawn complex income tax returns forms
GN Bureau | July 27, 2015
After being forced to revise income-tax returns forms, finance minister Arun Jaitley may also revise the draft of Indian financial code (IFC) which proposes to dilute powers of the RBI governor in interest rate decision.
He said today said that the government will take a view on the draft IFC after receiving comments from stakeholders.
“FSLRC (financial sector legislative reforms commission) has made its recommendations, which have been made public for comments. After the comments are received, it is only then that the government will take a view,” Jaitley told reporters in Delhi.
The draft had proposed taking away Reserve Bank chief’s authority to veto the interest rate decision of the central bank’s monetary policy committee.
The revised draft of IFC also proposed that the committee would have four representatives of the government and only three from the central bank, including the ‘RBI chairperson’.
The draft talks of ‘RBI chairperson’ and not ‘RBI governor’. RBI is headed by a governor, at present.The revised draft of IFC, released by the finance ministry last week, is based on the recommendations of the FSLRC headed by Justice B N Srikrishna.
At present, the RBI governor consults a technical advisory committee, but does not necessarily go by the majority opinion while deciding on the monetary policy stance.
Last week, chief economic adviser Arvind Subramanian said “FSLRC report is a report of FSLRC. It is not the report of the government or the finance ministry. The report is not the view of the government, commenting on media reports that the government is seeking to dilute RBI governor’s powers in deciding interest rate.”
The revised draft of IFC, posted on the website of the Finance Ministry, has said RBI “must constitute a Monetary Policy Committee to determine by majority vote on the Policy Rate required to achieve the inflation target”.
The first draft, submitted in March 2013, too had talked about the committee and majority vote, but gave powers to RBI chairperson to supersede the decision of the panel.
“In exceptional and unusual circumstances, if the RBI Chairperson disagrees with a decision taken at a meeting of the Monetary Policy Committee, the RBI Chairperson will have the right to supersede such decision,” it had said.
Nitish Kumar resigned as chief minister of Bihar on Wednesday, just hours after RJD chief Lalu Prasad ruled out his son and deputy chief minister Tejashwi Yadav putting in his papers following a case being registered by the CBI. The JD(U) and RJD alliance had been under considerable strain o
The Pradhan Mantri Awas Yojana (PMAY), introduced in June 2015, aims at providing every family with “a pucca house with water connection, toilet facilities, 24x7 electricity supply” by the time the nation completes 75 years of its Independence in 2022. The Yoj
Continuing as a bureaucrat just got a lot tougher with the government weeding out the incompetent and taking action against 381 civil services officers, including 24 who were from the Indian Administrative Service. The Narendra Modi government’s action against civil s
The National Investigating Agency (NIA) has arrested Shabbir Shah, who was once called the Nelson Mandela of Kashmir for his advocacy of peace, for his alleged involvement in money laundering to support terrorism in Kashmir. Shah, whose J&K democratic freedom party is a part of the pro-
Feel your favourite city. The words that typically come to your mind are liberally fused with adjectives in a valiant effort to give shape to our deeply felt emotions. It is quite common to find descriptions that are a chaotic and joyful mix of traits and idiosyncrasies that one can mistake for a good frie
Should employment exchanges be scrapped?